Question

1 Approved Answer

Posted on Jul 15, 2024

Examine and report the performance and financial position of Kitchen Culture (A company in Singapore). Your report should include a full analysis and preliminary conclusion

Examine and report the performance and financial position of Kitchen Culture (A company in Singapore). Your report should include a full analysis and preliminary conclusion to be used in an investment decision. Obtain the two most recent annual reports of Kitchen Culture that include the financial statements for the financial periods ended 30 June 2019 (FY2019), 30 June 2018 (FY2018) and 30 June 2017 (FY2017) respectively, and any other relevant materials of Kitchen Culture to start helping him to analyse and draft the report. All information, data and documents should be obtained from reliable sources like the Singapore Exchange website: https://w w w.s g x.com/securities/annual-reports-related-documents

(a) Analyse and discuss the profitability; liquidity and efficiency; and solvency of Kitchen Culture. (35 marks) (b) Appraise whether Kitchen Culture is a good investment option and state your preliminary conclusion. Besides the quantitative data, you should also use qualitative information to support your preliminary conclusion. (15 marks)

image text in transcribed

12 KITCHEN CULTURE HOLDINGS LTD. ANNUAL REPORT 2016/2017 FINANCIAL HIGHLIGHTS REVENUE BY BUSINESS SEGMENT (SS 000) REVENUE BY GEOGRAPHICAL REGION FP2017 Residential Projects 32,580 16.7%) Distribution and Retail 16,972 (34.5%) FP2017 Singapore 65.7% Malaysia 11.8% Others(China, Macau Seychelles and others 1.0% Hong Kong 21.5% FY2015 Residential Projects 15,693 159.0 Distribution and Retail 10,917 141.0% FY2015 Singapore 49.6% Malaysia 29.0% Others (China, Macau Seychelles and others 1.0% Hong Kong 20.4% FP2017 49,552 34.895) 14,657 247 (10,028) 1561) (9.901) 11.332) FY2015 26,610 (13,946) 12,664 1,072 19,143) (5.098) (5.159) (835) FY2014 22,104 (12.625) 9,479 134 17,286) (148) (3.234) (298) S$'000 Revenue Cost of sales Gross profit Other income Selling and distribution expenses Other operating expenses General and administrative expenses Finance costs Share of results of joint venture (Loss /Profit before tax Tax credit/expense) (Loss)/Profit for the year Other comprehensive income: Exchange differences on translation of foreign operations Exchange differences transferred to profit or loss upon remeasurement of investment Total comprehensive (loss]/income for the year (Loss)/Profit attributable to: Owners of the Company Non-controlling interests FY2013 32.952 (18,624) 14,328 111 7 808) 11.339) (3.063) 1294) (196) 1,739 (507) 1.232 FY2012 21,660 (11.072) 10,588 153 17,159) (187) 13.066) (263) (418) (352) (16) (368) (6,918) 16,499) 452 (6,047) (1.353) (41) (1,394) (6,918) 40 317 48 14 7 (6,878) (5,741) (1,346) 1.246 (361) 368 16,930) 12 (6,918) (5,344) 1703) (6,047) 11.328) (66) (1,394) 1.307 (75) 1,232 (368) Total comprehensive (loss)/income attributable to: Owners of the Company Non-controlling interests (361) (6,901) 23 (6,878) 15,058) (683) (5,741) (1.279) (67) (1,346) 1,321 (75) 1.246 (361) 12 KITCHEN CULTURE HOLDINGS LTD. 2017/18 ANNUAL REPORT FINANCIAL HIGHLIGHTS REVENUE BY BUSINESS SEGMENT (SS 000) REVENUE BY GEOGRAPHICAL REGION (%) Singar 48.4% Malaysia 4.0% China 4.7% Hong Kong 42.9% Residential Projects 5,060. Distribution and Retail 9,328 FY2018 FY2018 FP2017 Residential Projects 32,5805 Distribution and Retail 16,9724 FP2017 Singapore 65.7% Malaysia 11.8% China 1.0% Hong Kong 21.5% FY2018 14,388 18.1111 5.277 485 14,5101 17801 14,7851 17021 FP 2017 49,552 (34,895) 14,657 247 (10,028) (561) 19,901) 11,332) FY2015 26.610 (13,9461 12,664 1,072 19,143) 15,038) 15.159 18351 FY2014 22,104 (12,625) 9,479 134 17,286) (148) 13,234) (298) SS 000 Revenue Cost of sales Gross profit Other income Selling and distribution expenses Other operating expenses General and administrative expenses Finance costs Share of results of joint venture Loss Profit before tax Tax credit/fexpense) (Loss/Profit for the year Other comprehensive (lossincome: Exchange differences on translation of foreign operations Exchange differences transferred to profit or loss upon remeasurement of investment Total comprehensive (lossincome for the year (Lossl/Profit attributable to Owners of the Company Non-controlling interests FY2013 32.952 118,6241 14.328 111 17,808) 11.3391 13,0631 (294) (1961 1,739 (507) 1 282 (4.015 16,918) (1,353) 16.499) 452 16,0471 14.015) (6,918) (1,394) 12071 40 317 48 14 (4.222) 16,878) 15,741) (1,346) 1.246 14.0261 11 14,0151 16,930) 12 (6,918) 15,344 (703) 6,047) (1,328) (66) (1,394) 1.307 (75) 1.232 Total comprehensive (loss income attributable to: Owners of the Company Non-controlling interests 1321 14.2411 19 14.222) 16,901) 23 16,878 15.0581 16831 15,741) (1,279) (67) (1.346) (751 1.246 KITCHEN CULTURE HOLDINGS LTD. 2018/19 ANNUAL REPORT 13 FINANCIAL HIGHLIGHTS REVENUE BY BUSINESS SEGMENT (SS000) REVENUE BY GEOGRAPHICAL REGION (%) Singapore FY2019 Residential Projects 3,130 20 Distribution and Retail 7,921 FY2019 37.1% Malaysia 2.5% China 9.0% Hong Kong 51.4% Singapore 48.4% Malaysia 4.0% FY2018 Residential Projects 5,060 36.23 Distribution and Retail 9,328 FY2018 China 4.7% Hong Kong 42.9% FY2019 11,051 (6,2801 4,771 279 (2,8561 (8251 (4,7231 (4321 (3.786) (337) (4,123) FY2018 14,388 (8,1111 6,271 485 (4,5101 (780) (4,7851 (702) (4,015 SS 000 Revenue Cost of sales Gross profit Other income Selling and distribution expenses Other operating expenses General and administrative expenses Finance costs Loss before tax Tax (expensel/credit Loss for the year/period Other comprehensive income loss Exchange differences on translation of foreign operations Exchange differences transferred to profit or loss upon remeasurement of investment Total comprehensive loss for the year/period (Loss Profit attributable to: Owners of the Company Non-controlling interests FP2017 49,552 (34,895) 14,657 247 (10,028) (561) 19,901) (1,332) (6,918) FY2015 26,610 (13,946) 12664 1,072 19,143) 15,098) 15,159) (835) (6.499) 452 16,047) FY2014 22,104 112,625) 3,479 134 17,286 (1481 13,234) (298) 11,3531 (41) 11,394) (4,015) (6,918) 247 (207) 40 317 48 (11) 15,741) (3,876) (4,222) (6,878) (1,346) (3,8741 (249) (4,123) (4,0261 11 (4,015) (6,930) 12 (6,918) 15,344) (703) (6,047) 11,3281 166 (1,394) Total comprehensive (lossl/income attributable to: Owners of the Company Non-controlling interests (3,625) (2511 (3,876) (4,241) 19 (4,222) (6,901) 23 (6,878) 15,058) (683) (5,741) 11,279) 167) 11,346) 12 KITCHEN CULTURE HOLDINGS LTD. ANNUAL REPORT 2016/2017 FINANCIAL HIGHLIGHTS REVENUE BY BUSINESS SEGMENT (SS 000) REVENUE BY GEOGRAPHICAL REGION FP2017 Residential Projects 32,580 16.7%) Distribution and Retail 16,972 (34.5%) FP2017 Singapore 65.7% Malaysia 11.8% Others(China, Macau Seychelles and others 1.0% Hong Kong 21.5% FY2015 Residential Projects 15,693 159.0 Distribution and Retail 10,917 141.0% FY2015 Singapore 49.6% Malaysia 29.0% Others (China, Macau Seychelles and others 1.0% Hong Kong 20.4% FP2017 49,552 34.895) 14,657 247 (10,028) 1561) (9.901) 11.332) FY2015 26,610 (13,946) 12,664 1,072 19,143) (5.098) (5.159) (835) FY2014 22,104 (12.625) 9,479 134 17,286) (148) (3.234) (298) S$'000 Revenue Cost of sales Gross profit Other income Selling and distribution expenses Other operating expenses General and administrative expenses Finance costs Share of results of joint venture (Loss /Profit before tax Tax credit/expense) (Loss)/Profit for the year Other comprehensive income: Exchange differences on translation of foreign operations Exchange differences transferred to profit or loss upon remeasurement of investment Total comprehensive (loss]/income for the year (Loss)/Profit attributable to: Owners of the Company Non-controlling interests FY2013 32.952 (18,624) 14,328 111 7 808) 11.339) (3.063) 1294) (196) 1,739 (507) 1.232 FY2012 21,660 (11.072) 10,588 153 17,159) (187) 13.066) (263) (418) (352) (16) (368) (6,918) 16,499) 452 (6,047) (1.353) (41) (1,394) (6,918) 40 317 48 14 7 (6,878) (5,741) (1,346) 1.246 (361) 368 16,930) 12 (6,918) (5,344) 1703) (6,047) 11.328) (66) (1,394) 1.307 (75) 1,232 (368) Total comprehensive (loss)/income attributable to: Owners of the Company Non-controlling interests (361) (6,901) 23 (6,878) 15,058) (683) (5,741) (1.279) (67) (1,346) 1,321 (75) 1.246 (361) 12 KITCHEN CULTURE HOLDINGS LTD. 2017/18 ANNUAL REPORT FINANCIAL HIGHLIGHTS REVENUE BY BUSINESS SEGMENT (SS 000) REVENUE BY GEOGRAPHICAL REGION (%) Singar 48.4% Malaysia 4.0% China 4.7% Hong Kong 42.9% Residential Projects 5,060. Distribution and Retail 9,328 FY2018 FY2018 FP2017 Residential Projects 32,5805 Distribution and Retail 16,9724 FP2017 Singapore 65.7% Malaysia 11.8% China 1.0% Hong Kong 21.5% FY2018 14,388 18.1111 5.277 485 14,5101 17801 14,7851 17021 FP 2017 49,552 (34,895) 14,657 247 (10,028) (561) 19,901) 11,332) FY2015 26.610 (13,9461 12,664 1,072 19,143) 15,038) 15.159 18351 FY2014 22,104 (12,625) 9,479 134 17,286) (148) 13,234) (298) SS 000 Revenue Cost of sales Gross profit Other income Selling and distribution expenses Other operating expenses General and administrative expenses Finance costs Share of results of joint venture Loss Profit before tax Tax credit/fexpense) (Loss/Profit for the year Other comprehensive (lossincome: Exchange differences on translation of foreign operations Exchange differences transferred to profit or loss upon remeasurement of investment Total comprehensive (lossincome for the year (Lossl/Profit attributable to Owners of the Company Non-controlling interests FY2013 32.952 118,6241 14.328 111 17,808) 11.3391 13,0631 (294) (1961 1,739 (507) 1 282 (4.015 16,918) (1,353) 16.499) 452 16,0471 14.015) (6,918) (1,394) 12071 40 317 48 14 (4.222) 16,878) 15,741) (1,346) 1.246 14.0261 11 14,0151 16,930) 12 (6,918) 15,344 (703) 6,047) (1,328) (66) (1,394) 1.307 (75) 1.232 Total comprehensive (loss income attributable to: Owners of the Company Non-controlling interests 1321 14.2411 19 14.222) 16,901) 23 16,878 15.0581 16831 15,741) (1,279) (67) (1.346) (751 1.246 KITCHEN CULTURE HOLDINGS LTD. 2018/19 ANNUAL REPORT 13 FINANCIAL HIGHLIGHTS REVENUE BY BUSINESS SEGMENT (SS000) REVENUE BY GEOGRAPHICAL REGION (%) Singapore FY2019 Residential Projects 3,130 20 Distribution and Retail 7,921 FY2019 37.1% Malaysia 2.5% China 9.0% Hong Kong 51.4% Singapore 48.4% Malaysia 4.0% FY2018 Residential Projects 5,060 36.23 Distribution and Retail 9,328 FY2018 China 4.7% Hong Kong 42.9% FY2019 11,051 (6,2801 4,771 279 (2,8561 (8251 (4,7231 (4321 (3.786) (337) (4,123) FY2018 14,388 (8,1111 6,271 485 (4,5101 (780) (4,7851 (702) (4,015 SS 000 Revenue Cost of sales Gross profit Other income Selling and distribution expenses Other operating expenses General and administrative expenses Finance costs Loss before tax Tax (expensel/credit Loss for the year/period Other comprehensive income loss Exchange differences on translation of foreign operations Exchange differences transferred to profit or loss upon remeasurement of investment Total comprehensive loss for the year/period (Loss Profit attributable to: Owners of the Company Non-controlling interests FP2017 49,552 (34,895) 14,657 247 (10,028) (561) 19,901) (1,332) (6,918) FY2015 26,610 (13,946) 12664 1,072 19,143) 15,098) 15,159) (835) (6.499) 452 16,047) FY2014 22,104 112,625) 3,479 134 17,286 (1481 13,234) (298) 11,3531 (41) 11,394) (4,015) (6,918) 247 (207) 40 317 48 (11) 15,741) (3,876) (4,222) (6,878) (1,346) (3,8741 (249) (4,123) (4,0261 11 (4,015) (6,930) 12 (6,918) 15,344) (703) (6,047) 11,3281 166 (1,394) Total comprehensive (lossl/income attributable to: Owners of the Company Non-controlling interests (3,625) (2511 (3,876) (4,241) 19 (4,222) (6,901) 23 (6,878) 15,058) (683) (5,741) 11,279) 167) 11,346)